Tag: supply chain management

Third party logistics companies, commonly known as 3PLs, have grown popular in the last few years. More and more companies are seeing the importance of hiring 3PLs in improving their bottom line. By having trucking, warehousing and shipping tasks taken care of by a third party service, businesses are able to focus more on their main competence.

The Launch in Logistics Carriers

3PLs started in the 1980s. Then, warehousing, shipping, trucking and IT services were offered separately. In the 1980s, the trucking industry was deregulated through reductions in entry and price controls and collective vendor price setting.

This saw an increase in the number of tracking carriers from about 20,000 to about 1.2 million today. This created a fragmented market that has enabled third party logistics companies to offer value-added services in a multifaceted setting.

Integrated Global Logistics

Global logistics gained root in the 1990s. Most companies were moving their production overseas as they rapidly developed global markets. The developments were facilitated by the economic developments in the east. Third-party logistics companies were thus adapted to offering integrated services locally and internationally. Today, third party logistics providers have been accustomed to managing intricate global supply chains.

Technological Advancement

For the last fifteen years, some of the greatest technological advancements have taken place. The internet, for instance, has opened more doors for 3PLs and enabled them to bring their services closer to the people.

With technological advancements, third party logistics companies have been able to offer fast and solid solutions and connect different aspects of a business such as inventory, transportation and logistics among others. The efficiency brought by technology in the logistics industry continue to expand as the logistics companies continue to adapt to the forever changing demands in the global marketplace.

Role of Third Party Logistics Companies Today

Nowadays, more than 86 percent Fortune 500 companies in the US use 3PLs to handle logistics and supply chain functions. A logistics company of great repute is able to leverage partnerships throughout the world and access needed infrastructure to deliver premium rate services.

The litmus of a great logistics company is in its ability to offer supply chain solutions to businesses of all sizes. The realization that 3PLs help businesses focus more on their core competencies has made many emerging and established businesses seek their services. To this end, the number of third party logistics companies is growing by day.

There are a number of supply chain challenges that businesses are facing today. First off, a company may only need vehicles and a warehouse for short term peak demands. 3PLs offer flexibility to businesses by handling warehousing and transportation.

Most businesses lack the expertise required to handle a global supply chain. In place of training a whole team to take care of your supply chain, you can just hire a 3PL to offer the services just when you need them. Lastly, third party logistics companies have the technology needed to carry out every task in a supply chain. You do not have to spend a fortune buying equipment.

The beauty about 3PLs today is that they handle comprehensively all your supply chain activities, they offer domestic as well as international services and they serve small as well as Fortune 500 companies.

Many businesses around the globe are now increasing their dependence on advanced third-party logistics companies to help manage their distribution and logistics needs. Businesses also use these logistics companies in order to reduce the amount of capital used in distribution, increase their ability to tap foreign markets, decrease wastage, and meet the demand of the customers. Technology has the vital role for the success of the third-party logistics companies and the progression of their operations.

There are various ways in which these logistic companies can help retailers and manufacturers to fully grow and realize efficiency and profitability. Below we look at five of the most influentials ways in which logistics help retailers, manufacturers, and other companies improve their supply chain operations.

Morden Technology Investments

Companies should hire advance third-party logistics companies with modern logistics and warehousing technologies that deliver cutting-edge solutions and capabilities. With advance technology manufacturers and retailers can follow up their products to the final consumer but it will make the business operation to be costly especially in the international supply. Therefore companies should seek the help of third-party logistic companies which can operate all over the globe with ease hence enable them to reduce cost of operation and provide maximum security to their products.

Global Partnerships

Globalization is a great challenge to many businesses. This may be due to logistics and economic rules, security, unknown supply sources and compliance to international regulations. Employing the services of the third-party logistic companies enable the firms to operate with ease since the third-party logistic companies have advanced expertise, knows the global market sources and have advance infrastructure required to achieve the global coordination. These features are therefore necessary for the firms to meet the globalization ability.

Strategic Relationships

The advance third-party logistic companies has a very effective and committed to offer services to their clients. They also try to find out the best interests of their clients. Due to these they build a strong partnership with the clients enabling easy and effective deliveries and general logistics services. Therefore the firm will realize transformation, growth and profitability.

Use of Mobile Chain Supply Systems

Most advance third-party logistics companies are employing the use of mobile supply procedures to meet their client’s demands in time. These supply mobility features will increase the firm’s effectiveness, cost of operation. It has enable clients and their logistic companies to use devices like mobile phones and tablets at any place they are to conduct business, especially on the end of distribution and warehousing of inventory. This has enable firms to cut the cost of travelling and enhance efficiency in supply procedures like cost of transportation, storage, operational costs among other logistic operations.

Inventory Tracking

The third-party logistic services use tracking application like the GPS to follow up their inventories locations. This enable both the clients and the service providers to track theft, damages, destruction and decays also the quality and quantity also the products. This feature plays a major role in the success of firms using the third-party logistics companies therefore optimizing its operation costs.

There are many challenges that face the satisfaction of demands of the global market today because of its changing characteristics. These changes include logistics, improvement in technology and globalization. Business people are now trying to study and solve these changes for them to maximize their profits and minimize losses. Due to these considerations, a lot of companies worldwide are now increasing their dependence on the advance third-party logistics companies to help manage their distribution and logistics needs.

United Facilities, Inc. is one of the most established logistics companies in the state of Illinois. They provide a complete range of supply chain management services revolving around warehousing, logistics, transportation and packaging from four distribution centers across the state.

United Facilities also has presence in three other states apart from Illinois, namely California, Florida and Colorado. The company has a rich history dating back from 1959, giving it a background of stability and consistency. There has been a continuous and deliberate improvement of the business systems that has made united facilities one of the best solution providers in the US.

United Facilities also inherits 200 years of successful a business legacy, having been started by an enterprising family. Generations of the founding Swiss family are actively engaged in its management and decision-making, giving it a personal touch in everything they do.

Transportation solutions

The company offers transport services. With an advanced 3pl solutions service and coupled with well-trained logistics experts, there is rest and peace of mind for every customer. This comes from the reliability and efficiency that these two pillars give.

Warehouse management and fulfillment services

For those wishing to have third party warehousing and dispatching to various locations, this is the product for you. United Facilities will keep goods and dispatch them as you deem fit. This is a great product for companies sourcing and dispatching products remotely.

Information technology and resources

The company offers you the option to operate industry-standard warehouse management software from their portal to manage your goods. You will be able to track and manage your stock or assets remotely. This service will see your customers get their stuff faster.

Packaging and assembly solutions

Eliminate one step in the distribution process, by plugging into this service. The packaging and assembly division groups products and goods that need assembly before distributing to the customers. While this is seamlessly done, you will be able to track every step via the portal.

Value added services

There are unique benefits that are specific to United Facilities that every customer stands to gain. This comes from continuous improvement of the services that ensure cutting edge advantage for all the customers.

Illinois Distribution Warehouses

While United Facilities operates from four states, it has a bigger density in Illinois, being an indigenous company. As a result, the United Facilities has been acclaimed one of the top logistics management companies in IL. Below are four locations that you can find the warehouses in the state.

Montgomery North, IL

This 750,000 square foot facility is located 45 minutes south of Chicago and provides food grade logistics storage for goods. It is specifically located at: